Dartmouth's credit rating boosted to AAA

DARTMOUTH — Standard & Poor has raised the town's bond rating to AAA, the highest the rating service gives, and officials celebrated the news Thursday.

AUDITI GUHA

DARTMOUTH — Standard & Poor has raised the town's bond rating to AAA, the highest the rating service gives, and officials celebrated the news Thursday.

"I think this is a significant record that recognizes the town's strong budgeting performance and stable economy," said Town Administrator David Cressman during a press conference at Dartmouth Community Television. "We're happy our bond rating is higher than the federal government's."

The bond rating — previously AA — is important because the better it is, the less a community pays in interest when it borrows money.

Pending the Select Board's approval, Dartmouth recently issued $3.3 million in bonds, saving $2,500 per million, said Gregory Barnes, finance director and treasurer. The interest rate came in at 1.69 percent, officials said.

The report on the new rate cites the town's strong budget performance and solid management and financial policies, among other factors.

"The challenge is to keep us there with vigilance and adherence to our policies and procedures." Cressman said.

Officials said the rating is a result of the hard work of many people.

"It's a testament to the work of the staff, volunteers and elected officials in getting the town back on good financial ground and will save us a boatload of money when it comes to borrowing," said Shawn McDonald, chairman of the Select Board.

Dartmouth is the second town on the SouthCoast after Mattapoisett to receive Standard & Poor's highest bond rating. The town's rating increased from an A to an AA in 2009.

"Vigilance is a key watch word," said Barnes. "If you get the gold at the last Olympics there's no guarantee you will get the gold in the next one."

Contacted later, Greg Lynam, a former Finance Committee member, said, "We've always had a good bond rating though this is better ... We obviously have sufficient cash in the bank to be solvent in contrast to other communities that are deep in debt."